We will explain oil trading, discuss the best online brokers for oil stock, and how to choose a crude oil trading broker.
Oil is one of the newest commodities traded on commodity exchanges and forex platforms as a CFD asset. Oil is a soft product that is extracted from the ground. The by-products of crude oil are used in many industries, making it so important. The instability in the price of crude oil makes it a tradable asset.
Brokers can trade crude oil in these methods:
- It can be traded as a spot contract with instant settlement and distribution.
- It can be traded as futures contracts with settlement and delivery provided for 3 months, but the pricing of the contracts will be settled immediately.
Best Online Brokers for Oil Stock
Oil is one of the many resources you can trade as a CFD online. This means you will take a chance on the price of oil rather than buying the underlying asset, so you won’t need to take delivery of a hundred barrels of oil to your front room.
These are the best brokers based on their brokers’ performance, transparency, level of service, product, and conditions offered by the company, such as the spread on the oil price.
XTB is a CFD platform that ropes Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies. It supports 48 currency pairs with low-cost spreads for Forex and offers leverage of up to 200:1 for leverage accounts.
- The number one advantage of this is that you can choose between xStation 5 or MT4 trading platforms.
- There is a collection of 3000+ trading instruments across six asset classes and low spreads.
It has fewer forex pairs than some top competitors.
It has no steady support.
FP Markets broker offers the ability to trade on more than 10,000+ financial instruments involving Forex, Equities, Metals, Commodities, Indices, and Cryptocurrency CFDs. The Users have access to many accounts, including the Standard Account and Raw Account.
- An advantage of Fb market is that there is Global regulation- CBI, BVI FSC, ASIC, FSCA, FSA, and ADGM.
- There are extensive selections of platforms for all types of traders, including MT4/MT5.
- There are viable spreads and fees.
- One of the advantages of FB markets is that it also offers multilingual customer support.
- The disadvantage of Fb markets is that it has that is not available to residents in the USA and Iran.
IC Markets was founded in Sydney, Australia, in 2007 and has been regulated by the Australian Securities and Investments Commission (ASIC), as well as the Seychelles Financial Services Authority (FSA). IC markets processed $646 billion worth of trading volume in April 2019 alone.
The Broker offers services and features designed for both beginner and professional traders and also promotes themselves as the primary choice for high volume traders, scalpers, and trading algos data center, which processes more than 500,000 trades per day.
- There is an honest ECN broker with institutional-grade liquidity.
- There is the availability of MetaTrader and cTrader on desktop, eBay, and mobile.
- There is also a wide range of trade-able products with steady customer support.
- Last but not least is that it has an impressive library of education and videos.
- The new traders may be overwhelmed by choice of markets and platforms.
Plus500 is one of the foremost online CFD providers. It was founded in Israel in 2008. Today, it has expanded and has regional offices in the UK, Cyprus, Australia, and Singapore. Brokers can trade over 2,500 trading instruments on Plus500 platforms.
- There is the availability of 2,000+ cfd products for trading across global markets, including cryptocurrency cfds.
- Plus500 offers trusted stop-loss orders.
- There are multiple regulations from different countries, including fca, asic, mas and cysec.
- There is the availability of more than 100 chart indicators on the web platform.
FXTM is also known as ForexTime and started operations in 2011 from its de facto headquarters in Limassol, Cyprus. Since then, FXTM has achieved speedy attained global expansion, motivated mainly by its desire to serve exact local markets with solid FX demand.
- It is majorly controlled by leading regulators CySEC and FCA
- FXTM as access to both MT4 and MT5
- It also has a remarkable selection of analysis and news
- It has a robust educational offering.
- There is the availability of both ECN and standard accounts.
- It is not the lowest spread on the standard account
EToro was legally known as RetailFX. EToro is the original online Broker for social trading that was founded in 2007 by the Assia siblings and their friend David Ring in Tel Aviv, Israel. Their Open book social trading platform changed the nature of the way new online traders can trade the financial markets. It creates a user-friendly environment and automatically allows traders to copy the trades of other traders’ strategies, making the markets accessible and easy to everyone, irrespective of their experience level.
- EToro is a highly regulated Broker (FCA, CySEC, and ASIC)
- It is an advanced trading platform
- It has an extensive range of assets to trade with
- There is the capacity to earn a 2% management fee as an investor trader
- The spreads are higher than average.
- EToro does not have the MetaTrader platform.
Choose a Crude Oil Trading Broker
When you are choosing a broker to give you the best in crude oil trading, you need to:
- Check if the Broker is regulated and the conditions attached to the trading of crude oil by the Broker.
- Check the type of trading platform, the trading platforms featured, and what is the crude oil asset listed as.
- Finally, check the software is available to trade crude oil.
If you have queries, kindly comment below, and we will do our best to respond to your questions as soon as possible. Also, drop your view on the best online brokers for oil stock discussed in this guide.